Ministry of Trade Industry and Resources

The Korean government will introduce policy measures to curb the recent spike in domestic petroleum prices driven by developments in the Middle East and to limit sharp price fluctuations in the event of a supply disruption. To that end, following consultations with relevant ministries, the Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) will implement a price ceiling system for petroleum products.

The price ceilings will apply to refiners’ supply prices charged to gas stations and dealers, not to retail prices at gas stations. Effective from 12:00 a.m. on March 13 through March 26, 2026, the initial ceilings will be KRW 1,724 per liter for gasoline, KRW 1,713 for diesel, and KRW 1,320 for kerosene. These figures are KRW 109, KRW 218, and KRW 408 lower, respectively, than the average supply prices reported by refiners on March 11, 2026.

The ministry plans to adjust the price ceilings on March 27, 2026, to reflect domestic and international oil market conditions. For the adjustment, the initial tax-exclusive price ceilings will serve as the base prices, and taxes will be added after applying the rate of increase in international petroleum product prices over the relevant period is applied. The rate of increase will be calculated based on the price indicators published by Petronet by the Korea National Oil Corporation.

To facilitate the prompt implementation of the price ceiling system for petroleum products, MOTIR will work with relevant ministries to finalize detailed standards for post-implementation settlement procedures with refiners to strengthen monitoring and oversight of gas stations. The ministry will also continue to review support measures, including energy vouchers, for energy-vulnerable groups such as self-employed business owners and farmers.